URGENT UPDATE: Michelin-starred chef David Chang has declared that the declining alcohol consumption among Gen Z poses a significant threat to the restaurant industry. In a recent interview, Chang emphasized that this shift is not just a trend but a “real existential threat” to dining establishments across America.
Chang, the founder of the Momofuku restaurant group, voiced his concerns during an appearance on TBPN, highlighting that young adults are drinking less than previous generations. “Kids just don’t drink anymore,” he stated, reflecting on a worrying industry trend. This dramatic shift is impacting beverage sales, which traditionally account for about 30% of total restaurant revenue.
The statistics are stark: a Gallup survey conducted between 2023 and 2025 revealed a 9% decrease in alcohol consumption among young adults, including Gen Z and some millennials. Chang noted that a staggering 18% drop in beverage sales is creating a financial squeeze for restaurants already grappling with rising costs.
This decline in drinking habits has broader implications, as restaurants must adjust to shifting consumer preferences. Many young people are opting for alternative social experiences, such as communal dining and supper clubs, instead of traditional nightclubs and bars. “They are never going to know what it is like to wake up at 3 p.m. in the afternoon and be like: ‘Shit, I left my credit card in that bar,'” Chang lamented.
The ramifications are significant. Phil Kafarakis, CEO of the IFMA (The Food Away From Home Association), echoed Chang’s concerns, stating that consumer sentiment is “in a very bad place.” As restaurants face rising ingredient and labor costs, along with fluctuating customer behavior, they may need to find ways to recoup financial losses elsewhere.
“I don’t have an answer,” Chang admitted regarding the industry’s challenges. “Food needs to get more expensive,” he suggested, though he acknowledged that such a move could be detrimental as restaurants are already perceived as pricey.
As the industry braces for further challenges, Kafarakis predicts a reckoning in the coming year, with more restaurant closures on the horizon. “This whole thing is really becoming a tsunami of sorts that really doesn’t look like it’s going to slow down,” he warned.
The future of dining out hangs in the balance as industry leaders like David Chang plead for a cultural shift in drinking habits. The restaurant sector is at a crossroads, and the decisions made today will shape its landscape for years to come.
As developments unfold, the implications for restaurateurs and consumers alike remain critical—will Gen Z adapt their drinking habits to support the dining industry, or will restaurants continue to face an uphill battle?
